Tax And Accounting Rules Applicable To Vehicles With Limited Taxation Treatment

In the context of the deep changes imposed by our country's integration into the European Union, it is well known that tax law has undergone substantial changes, especially in terms of value added tax. However, with the coming of the financial and economical crisis in Romania, the authorities have always been concerned with attracting additional amounts to the general consolidated budget, justification that contributed to the issue of legislative documents in order to limit the deduction of certain expenses incurred by entities not directly related to business performance, and the value added tax in respect thereof. Based on this consideration, in this paper we intend to address the accounting and tax implications that legislative changes applicable from May 1, 2009 [2], regarding the limitation of deduction right for vehicles, have on both the taxable income from a firm and on the cash assets, without omitting to analyze the changes affecting this sector since January 1, 2012 and thereafter on July 1, 2012. Therefore, the purpose of this paper concerns, on the one hand, the fiscal approach in terms of income tax and VAT for the purchase of vehicles (including leasing), fuel and operating , maintenance and repair costs thereof, and on the other hand, the accounting rules required for motor vehicles, owned or in use, subject to expense deduction limitation.